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Gerrard has declared his intention to quit his only club after rejecting Liverpool's offer of a new contract.
The two parties have been engaged in talks in a bid to end 12 months of uncertainty regarding his future on Merseyside.
Chelsea were keen to sign the midfielder last summer but Gerrard opted to reject the club's overtures to stay with his boyhood heroes.
The Reds' recent success in the UEFA Champions League final against Milan appeared to sway Gerrard into committing his long-term future to Rafa Benitez's side.
But discussions regarding a new deal have broken down in recent days and Gerrard's relationship with Liverpool's top brass is now beyond repair.
Liverpool have confirmed that talks to extend Gerrard's deal, which currently runs until 2007, are now over after the skipper expressed his determination to leave.
"The club has made it crystal clear we want to keep Steven at Anfield," read a club statement.
"Sadly, he has told us this afternoon that he will not accept our offer of an improved and extended contract because he wants to leave Liverpool.
"We very much regret the decision he has taken."
Gerrard's decision to publicly confirm his eagerness to quit Liverpool will now spark a transfer scramble for his services.
Chelsea have already confirmed their initial offer for the 25-year-old, believed to be in the region of £32 million, has been rejected and they are likely to come in with a revised bid.
Real Madrid are also interested but lack the financial muscle to compete with the Premiership champions and that could leave Chelsea as the sole realistic bidders for Gerrard.
The Reds will now be left in the position of trying to negotiate the best price for their midfield powerhouse and it is likely a British transfer record fee will be required to secure Gerrard's signature.
[URL]http://skysports.planetfootball.com/LIST.ASP?HLID=289598[/URL]
> Technically, they may be the best, but we all now that plenty of luck
> was on their side, I mean....look their goal against Chelsea wasn't
> even proper
Chelsea couldn't beat them. One shot on target. From the best team in Britain?
Anyway as for Gerrard going, well this could be the best thing ever for Liverpool.
When Rooney left Everton, other than creating a fantastic cash boost, it also enabled every other player in the team to shine who were forced to live under his shadown.
Everton were relegation fodder with Rooney.
Liverpool will play more consistantly next season without Steven Gerrard being the only talked about player on the pitch. Sure he could pick Liverpool up and he was/is the best player they have.
But now the rest of the team can finally shine.
> But we all know they aren't the best team in Europe, they were the
> best in that competition though.
What?!?!
So you're saying the best team in Europe weren't in the Champions League? Name please.
At least he's left Liverpool with the European Cup. I don't imagine he'll go to a British team though, he's not the sort.
Are you know?
I'm just joking, they're awful.
But we're sure as hell better than Everton.
> But if you win the Champions League, technically you are the best
> team in Europe.
Surely that's cancelled out by the fact that they could only come 5th in the Prem.
Gah. I hate dubious phrasiology like this.
I think it'll have to be left as, "They are one of the best teams in Europe/the world."
But we all know they aren't the best team in Europe, they were the best in that competition though.
[S]Well actually, I dont think they were...but i'll shut up now.
> So you think you are the best team in Europe?
>
> Ahahahahahaha, you dont even come in the top 3 best premiership
> teams.
"You are".
I'm not a Liverpool fan. I don't even like them.
But if you win the Champions League, technically you are the best team in Europe.
They beat Juventus when it mattered. They beat Chelsea when it mattered. They beat AC Milan when it mattered. They are the current Champions League champions, and therefore can claim to be the best team in Europe.
Whether you agree with it or not is up to you, but seeing as you'd have hard time arguing the case for any other team on the continent, I suggest you do.